Is Downtown Boston An Oversaturated Cannabis Market?

Boston Cannabis Board seeks data showing “whether the location of several cannabis establishments in close proximity to one another is likely to have a detrimental impact on that market.”


Recently, the Boston Cannabis Board “reviewed an application for a Retail Recreational Cannabis license at Faneuil Hall Marketplace.” 

According to the BCB, “This would add a 6th cannabis establishment within a six (6) square mile radius.” That despite the Boston Zoning Code, Article 8 “specifically [stating] that any cannabis establishment shall be sited at least one half mile or 2,640 feet from another existing cannabis establishment.”

Since the BCB is responsible for reviewing all applications for a cannabis license in the City of Boston, it is now seeking data and information that can inform complex decisions where malleability or nuance may be needed. More specifically, the “goal of the project is to provide the BCB with an updated analysis of how the market is being affected by existing cannabis establishments and the city’s ‘buffer zone’ ordinance.”

According to an active Request for Proposals (RFP) [aka Written Quote Contract], the BCB is looking to hire a vendor to conduct a research study on the market saturation of cannabis establishments in Boston. Within the scope of work, the “selected vendor will be responsible for providing research on the effects of cannabis market saturation, explaining the location of existing establishments, and incorporating prior survey data.”

With this contract, the BCB is “hoping to procure the services of a research or research company to provide [a current study] of the economic impacts of locating multiple cannabis licenses within a half mile radius.”

Background of cannabis dispensary zoning in Boston

Per the RFP: “The State of Massachusetts, by ballot initiative, legalized the sale of cannabis in 2016. The City of Boston adopted policy and zoning to allow for the siting of at least 52 cannabis establishments,” and “opted to implement a board to oversee the application process.” 

The BCB is a five-member panel with “expertise in licensing, security, employment, diversity and community engagement.” It “grants licenses for cannabis establishment while the Zoning Board of Appeals grants relief from the ‘conditional’ use and relief from the ‘buffer zone’ ordinance.”

Dispensary buffer zones in Boston

“The BCB’s priority is to evaluate cannabis use applications on a one to one (equity:non equity ratio) that adhere to the City’s rules and regulations.” Within that framework, “For the purposes of cannabis licensing, [City of Boston] regulation creates a ‘buffer zone’ between cannabis establishments.” 

“Applicants are granted a cannabis license within the half mile buffer zone if the applicant can provide the BCB with sufficient information and documentation that the site will have no detrimental impact on the existing residential and business community.”

Is Downtown Boston already oversaturated with pot shops?

According to the RFP: “The City of Boston has granted Host Community Agreements to 69 establishments and has issued 36 licenses to cannabis establishments. The Downtown area has four sites that are open and operating and one pending site that has received City approval and awaits state approval from the state.”

The open procurement notes: “As cannabis is still an emerging industry, stakeholders have raised concerns about over-saturation of an area in relation to cannabis establishments and the potential impact of over-saturation on this emerging market.”

Since the “BCB is tasked with managing cannabis license applications and determining the appropriateness of the application based on [various] criteria [location, community feedback, etc.],” members sometimes have to impugn “applications that seek to pierce the ‘buffer zone’ of an existing or pending establishment.” 

As such, “The purpose of this project is to determine the impacts of issuing several cannabis licenses in a localized area, as documented by other municipalities, specifically pertaining to market saturation.”

The scope of work for the saturation study

Among other things, vendors are asked to:

  • Determine what data or research is available on the impact of multiple cannabis locations within a close proximity.
  • Determine if there is a causal relationship between licensed premise locations within a half-a-mile proximity … and retail marijuana market performance.
  • Provide the BCB with research findings that inform the BCB application review process for those applicants seeking to pierce the ‘buffer zone.’

Vendor bids are due by Oct. 3, and the maximum budget for the project is $25,000. The final research findings have to be provided to the BCB by Nov. 24, 2025.